Axle Corporation earned 3.00 per share and paid a dividend of 2.40 on its common stock last year. Its common stock is trading at 40 per share. Axle is expected to have a return on equity of 15%, an effective tax rate of 34%, and to maintain its historic payout ratio going forward. In estimating Axles after-tax cost of capital, an analysts estimate of Axles cost of common equity would be closest to: